diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/rename/RenameKotlinPsiProcessor.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/rename/RenameKotlinPsiProcessor.kt
index 1d5ee60760e..1d7cd9d489d 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/rename/RenameKotlinPsiProcessor.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/rename/RenameKotlinPsiProcessor.kt
@@ -59,6 +59,12 @@ abstract class RenameKotlinPsiProcessor : RenamePsiElementProcessor() {
         return references
     }
 
+    override fun getElementToSearchInStringsAndComments(element: PsiElement): PsiElement? {
+        val unwrapped = element?.unwrapped ?: return null
+        if ((unwrapped is KtDeclaration) && KtPsiUtil.isLocal(unwrapped as KtDeclaration)) return null
+        return element
+    }
+
     override fun getQualifiedNameAfterRename(element: PsiElement, newName: String, nonJava: Boolean): String? {
         if (!nonJava) return newName
 
diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/rename/RenameKotlinPsiProcessor.kt.173 b/idea/src/org/jetbrains/kotlin/idea/refactoring/rename/RenameKotlinPsiProcessor.kt.173
index b0875034e34..6762cb24c90 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/rename/RenameKotlinPsiProcessor.kt.173
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/rename/RenameKotlinPsiProcessor.kt.173
@@ -59,6 +59,12 @@ abstract class RenameKotlinPsiProcessor : RenamePsiElementProcessor() {
         return references
     }
 
+    override fun getElementToSearchInStringsAndComments(element: PsiElement?): PsiElement? {
+        val unwrapped = element?.unwrapped ?: return null
+        if ((unwrapped is KtDeclaration) && KtPsiUtil.isLocal(unwrapped as KtDeclaration)) return null
+        return element
+    }
+
     override fun getQualifiedNameAfterRename(element: PsiElement, newName: String?, nonJava: Boolean): String? {
         if (!nonJava) return newName
 
diff --git a/idea/testData/refactoring/rename/inplace/NoTextUsagesForLocalVar.kt b/idea/testData/refactoring/rename/inplace/NoTextUsagesForLocalVar.kt
new file mode 100644
index 00000000000..86da3f6b630
--- /dev/null
+++ b/idea/testData/refactoring/rename/inplace/NoTextUsagesForLocalVar.kt
@@ -0,0 +1,6 @@
+fun foo(x: Int) {
+    val <caret>y = x + 1
+    val z = y + 1
+    // y
+    val s = "y"
+}
\ No newline at end of file
diff --git a/idea/testData/refactoring/rename/inplace/NoTextUsagesForLocalVar.kt.after b/idea/testData/refactoring/rename/inplace/NoTextUsagesForLocalVar.kt.after
new file mode 100644
index 00000000000..bcf70775d56
--- /dev/null
+++ b/idea/testData/refactoring/rename/inplace/NoTextUsagesForLocalVar.kt.after
@@ -0,0 +1,6 @@
+fun foo(x: Int) {
+    val w = x + 1
+    val z = w + 1
+    // y
+    val s = "y"
+}
\ No newline at end of file
diff --git a/idea/tests/org/jetbrains/kotlin/idea/refactoring/InplaceRenameTest.kt b/idea/tests/org/jetbrains/kotlin/idea/refactoring/InplaceRenameTest.kt
index 6f446b69947..1889d56fdd3 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/refactoring/InplaceRenameTest.kt
+++ b/idea/tests/org/jetbrains/kotlin/idea/refactoring/InplaceRenameTest.kt
@@ -174,6 +174,10 @@ class InplaceRenameTest : LightPlatformCodeInsightTestCase() {
         doTestMemberInplaceRename("`object`")
     }
 
+    fun testNoTextUsagesForLocalVar() {
+        doTestMemberInplaceRename("w")
+    }
+
     private fun doTestImplicitLambdaParameter(newName: String) {
         configureByFile(getTestName(false) + ".kt")